EconSource: EU Says it is Ready to Lend Tunisia EUR 500 Million
The European Union (EU) said Friday it is ready to lend Tunisia EUR 500 million in 2016-2017 to help the country address economic difficulties, weeks after violent protests erupted demanding jobs.

The EU said the macrofinancial assistance will take the form of medium-term loans at favorable financing conditions. European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said, “The European Commission is living up to its commitment to provide greater support for the reform efforts made by Tunisia . . . Today’s proposal will help Tunisia to cover external financing needs and will give its people some leeway to achieve a sustainable and inclusive growth model.” A press release from the European Commission said that the macrofinancial assistance aims to help cover Tunisia’s external financing needs in 2016 and 2017. The EU also aims to support Tunisia’s reform measures, improve the country’s investment climate, and foster economic integration with the EU. [Reuters, 2/12/2016]
 
The Central Bank of Egypt (CBE) has injected over $14 billion dollars into local banks over the past three months to facilitate import activity and curb inflation on essential goods, a government statement said Thursday. “The central bank and Egyptian banks have embarked on an urgent plan to facilitate foreign trade in order to provide for production and for essential consumer goods for Egyptian citizens,” a CBE report cited in the statement said. “To this end the central bank has provided more than $14 billion over three months and this has had an immediate impact on foreign trade and industrial activity.” The dollar injections have helped push down prices on essential food items by 25 to 35 percent, the statement added. The CBE report said the dollar injections did not affect its level of foreign reserves, which have remained steady around $16 billion dollars in recent months. [Reuters, 2/12/2016]
 
Egypt’s Minister of Industry and Foreign Trade Tarek Kabil and Head of the European Union (EU) Delegation to Egypt Ambassador James Moran announced on Thursday the implementation of a Trade and Domestic Market Enhancement Program. As part of the program, the EU will provide Egypt with technical assistance in foreign trade and will provide Egypt with EUR 20 million to support industrial development and infrastructure. Kabil said the program is a central part of the ministry’s plans to increase industrial sector growth by 9 percent. The program also aims to align Egypt’s industrial sector with Europe’s 2020 sustainable development strategy to mitigate trade barriers. Moran noted that EU investment in Egypt rose by 4 percent in 2015 and that the volume of trade between Egypt and the EU increased by 11 percent since 2015. [DNE, SIS, 2/11/2016] 
 
Energy Minister of the United Arab Emirates (UAE) Suhail bin Mohammed al-Mazrouei said members of the Organization of Petroleum Exporting Countries (OPEC) are ready to cooperate on a production cut, while non-OPEC producers are holding off on output increases amid current prices. He said non-OPEC supplies are expected to drop up to 800,000 barrels per day while global demand growth is seen at 1.3 million bpd, which will to balance the market balance itself. “The positive thing is the current market is forcing everyone not to increase output . . . I’m optimistic that the balance will happen this year despite the oversupply and stocks overhang,” Mazrouei said. [Reuters, 2/11/2016]
 
Foreign direct investment (FDI) in Turkey rose 32 percent in 2015 compared to the previous year, the country’s investment agency said Thursday. FDI reached $16.6 billion, up from $12.5 billion in 2014. The service sector saw the greatest input of foreign capital at $6.2 billion, followed by the manufacturing and energy sectors. President of Turkey’s Investment Support and Promotion Agency Arda Ermut said he expects investment in Turkey to continue to increase, as investor confidence is renewed. “We can predict progress regarding international investments in 2016 based on the views and opinions of international investors who are pleased with the reforms and steps taken to improve the investment environment,” Ermut said. [Anadolu Agency, Daily Sabah, 2/11/2016]
 
Also of interest
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Inflation level threatens Turkey’s growth, says deputy PM | Today’s Zaman

EU says it is ready to lend Tunisia EUR 500 million The European Union (EU) said Friday it is ready to lend Tunisia EUR 500 million in 2016-2017 to help the country address economic difficulties, weeks after violent protests erupted demanding jobs. The EU said the macrofinancial assistance will take the form of medium-term loans at favorable financing conditions. European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said, “The European Commission is living up to its commitment to provide greater support for the reform efforts made by Tunisia . . . Today’s proposal will help Tunisia to cover external financing needs and will give its people some leeway to achieve a sustainable and inclusive growth model.” A press release from the European Commission said that the macrofinancial assistance aims to help cover Tunisia’s external financing needs in 2016 and 2017. The EU also aims to support Tunisia’s reform measures, improve the country’s investment climate, and foster economic integration with the EU. [Reuters, 2/12/2016] Egypt’s central bank injected $14 billion in three months to ease dollar shortage The Central Bank of Egypt (CBE) has injected over $14 billion dollars into local banks over the past three months to facilitate import activity and curb inflation on essential goods, a government statement said Thursday. “The central bank and Egyptian banks have embarked on an urgent plan to facilitate foreign trade in order to provide for production and for essential consumer goods for Egyptian citizens,” a CBE report cited in the statement said. “To this end the central bank has provided more than $14 billion over three months and this has had an immediate impact on foreign trade and industrial activity.” The dollar injections have helped push down prices on essential food items by 25 to 35 percent, the statement added. The CBE report said the dollar injections did not affect its level of foreign reserves, which have remained steady around $16 billion dollars in recent months. [Reuters, 2/12/2016] Egypt, EU launch trade program Egypt’s Minister of Industry and Foreign Trade Tarek Kabil and Head of the European Union (EU) Delegation to Egypt Ambassador James Moran announced on Thursday the implementation of a Trade and Domestic Market Enhancement Program. As part of the program, the EU will provide Egypt with technical assistance in foreign trade and will provide Egypt with EUR 20 million to support industrial development and infrastructure. Kabil said the program is a central part of the ministry’s plans to increase industrial sector growth by 9 percent. The program also aims to align Egypt’s industrial sector with Europe’s 2020 sustainable development strategy to mitigate trade barriers. Moran noted that EU investment in Egypt rose by 4 percent in 2015 and that the volume of trade between Egypt and the EU increased by 11 percent since 2015. [DNE, SIS, 2/11/2016]  UAE oil minister says OPEC ready to cooperate on output cut Energy Minister of the United Arab Emirates (UAE) Suhail bin Mohammed al-Mazrouei said members of the Organization of Petroleum Exporting Countries (OPEC) are ready to cooperate on a production cut, while non-OPEC producers are holding off on output increases amid current prices. He said non-OPEC supplies are expected to drop up to 800,000 barrels per day while global demand growth is seen at 1.3 million bpd, which will to balance the market balance itself. “The positive thing is the current market is forcing everyone not to increase output . . . I’m optimistic that the balance will happen this year despite the oversupply and stocks overhang,” Mazrouei said. [Reuters, 2/11/2016] Foreign direct investment in Turkey rises by over 30 percent Foreign direct investment (FDI) in Turkey rose 32 percent in 2015 compared to the previous year, the country’s investment agency said Thursday. FDI reached $16.6 billion, up from $12.5 billion in 2014. The service sector saw the greatest input of foreign capital at $6.2 billion, followed by the manufacturing and energy sectors. President of Turkey’s Investment Support and Promotion Agency Arda Ermut said he expects investment in Turkey to continue to increase, as investor confidence is renewed. “We can predict progress regarding international investments in 2016 based on the views and opinions of international investors who are pleased with the reforms and steps taken to improve the investment environment,” Ermut said. [Anadolu Agency, Daily Sabah, 2/11/2016] Also of interestGeneral Motors to resume operations in Egypt | Reuters, DNEEgypt wheat tender shows risks as traders charge hefty premium | Bloomberg, DNE, ReutersTunisian-Jordanian Business Council created in Amman | TAPRussia boosts ties with Iraq in challenge to US influence | ReutersInflation level threatens Turkey’s growth, says deputy PM | Today’s Zaman